Communicate With The Telecom Sector Via ETFs

July 16, 2012


The days of AT&T representing the best way to invest in telecommunications are long over, but these days, telecom ETFs may be the best way to access the fast-growing telecom sector, according to an article on Seeking Alpha.

There is a wide variety of choices when it comes to investing in the $2 billion telecom ETF market. For U.S. exposure, the article said the following ETFs are worth looking into:

  • iShares Dow Jones U.S. Telecommunications (NYSEArca: IYZ)
  • Vanguard Telecommunication Services (NYSEArca: VOX)
  • SPDR S&P Telecom (NYSEArca: XTL)
  • Focus Morningstar Communications Services (NYSEArca: FCQ)


For both U.S. and international exposure, the following ETFs are on the market:

  • iShares S&P Global Telecommunications (NYSEArca: IXP)
  • First Trust Nasdaq CEA Smartphone Index Fund (NasdaqGM: FONE)


Lastly, for only the international telecom sector, these funds are available:

  • SPDR S&P International Telecommunications (NYSEArca: IST)
  • EGShares Telecommunications GEMS (NYSEArca: TGEM)
  • iShares MSCI ACWI ex US Telecommunication Services (NYSEArca: AXTE)


When examining telecom ETFs, it should be noted that developed countries are more income based, while frontier and emerging markets tend to be more volatile yet offer higher growth potential, according to the article, which was written by Seeking Alpha contributor Ron Rowland.

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